When a company director is on the payroll (i.e. paid via PAYE), they are eligible for a number of statutory entitlements in the same way that their employees are. A common misconception is that a director cannot claim redundancy payment when their company enters liquidation or administration whilst their employees can; however, in most cases directors can apply for redundancy and other statutory entitlements based on a number of qualifying criteria.
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Do You Qualify?
Essentially, if your company is either in liquidation or the writing is on the wall and liquidation seems inevitable, there is a very high chance of you receiving some sort of compensatory pay-out if the following criteria are true:
- You are paid via PAYE or have been in the past
- The company has been incorporated for at least two years
- The company has traded in the last 12 months
- The company was insolvent at the time of liquidation or is currently insolvent
We have helped thousands of company directors in recent years; many of which were completely unware of their right to claim statutory entitlements. The average redundancy payment for directors is around £12,000.
Where does the money come from?
Directors of a struggling company often fail to consider their redundancy entitlements – wrongly assuming that because the company bank balance is empty or in the red, there is no claim potential. The money you claim will come from the National Insurance Fund, a giant government insurance scheme into which we all pay as we work – otherwise known as National Insurance Contributions. The government’s Redundancy Payments Service is there to offer a parachute to employees and employers alike when they lose their jobs or businesses.
Can you assist with my claim?
Absolutely – we have a team of advisors with vast experience in assisting company directors on issues such as insolvency and redundancy. It takes just minutes to qualify a director’s right to claim and advise you of the next steps. We have the expertise to assist company directors pre and post insolvency and also assess the impact on your staff and the risk of TUPE. Our experience immediately reduces the possibility of rejection, under claiming, and the possibility of employment tribunal proceedings – and the director only pays our fee once you have been paid so there truly is nothing to lose.